The eco-friendly tourism project is set to cost up to $928m and create 3,000 job opportunities, according to Edamah officials.
The first phase of the scheme will see the development of a 350-room, five-star hotel resort, which will open next year, and 150 eco-friendly apartments and villas.
The second phase will include a 150-room hotel, a 200-room wellness resort and spa, 155 villas, a bird research centre, a heritage market, and the restoration of the 100-year-old Hawar mosque. It is expected to be completed by the end of 2021.
The Hawar area is a group of 35 islands that span across 51 million square metres southeast of Bahrains mainland. About 80 per cent of the land is a wildlife preservation zone and will be used to attract eco-conscious tourists, according to Edamah.